Which of the Following Statements About the Capital Acquisitions Ratio

question 81

Multiple Choice

Which of the following statements about the capital acquisitions ratio is incorrect?

• A)The ratio is computed by dividing cash flow from operating activities by cash paid for property, plant, and equipment.
• B)Because the need for investment in property, plant, and equipment differs dramatically across industries, a firm's ratio should only be compared with its prior years' ratio or with firms in the same industry.
• C)A high ratio indicates more need for outside financing of current and future purchases of property, plant, and equipment.
• D)The ratio increases when an account receivable is collecteD.The capital acquisitions ratio is calculated by dividing cash flow from operating activities by cash paid for property, plant, and equipment.A high ratio demonstrates less need for outside financing.

Understand the basic structure of arguments and the function of claims within them.

Identify and interpret the role of counterarguments and alternative viewpoints in discussions.

Recognize and analyze implicit assumptions in arguments.

Apply the concept of argument mapping to visualize reasoning processes and decision-making paths.

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The lowest legal hourly wage that an employer can pay an employee, set by government law.

Minimum Wage

The lowest legally allowed payment that an employee can be paid for their labor.

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Minimum Wage

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